ECON 209 Chapter Notes - Chapter 20: Gross Domestic Product, Fixed Investment, National Accounts
Document Summary
Intermediate goods are outputs of some firm that are used as inputs by other firms in a further stage of production. Final goods are products that are not used inputs by other firms but are produced to be sold for consumption, investment, government or export during the period under consideration. Value added = sales revenue cost of. The sum of all values added in an economy is a measure of. All three measures yield gdp gross domestic. Ca: 2) investment expenditure is expenditure on goods not for present consumption, including inventories of capital goods, such as factories, computers etc. , made but not yet sold and of inputs purchased but not yet used in production. Changes in inventories: inventories stocks of raw materials, goods in process, and finished goods held by firms to mitigate the effect of short-term fluctuations in production or sales.